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When applying for any form of financial assistance, a current credit report is a standard requirement. This report provides a comprehensive overview of your financial history and money management practices, distilled into a numerical credit score ranging from 0 to 1000.
As a mortgage broker in Leeds, our daily encounters reveal a spectrum of credit scores, with variations from low to high, dependent on individual financial circumstances. It’s rare to find two individuals with identical credit scores in a group of ten due to the personalised nature of these assessments.
Credit scores, ranging from poor to excellent, are typically defined by credit reference agencies like Experian, Equifax, and TransUnion. However, interpretations of a “good” credit score can vary among lenders, making it essential to consider individual perspectives.
The cornerstone of mortgage approval is reliability, and a commendable credit score significantly contributes to establishing your dependability in managing finances. However, it’s important to note that even an excellent credit score doesn’t guarantee mortgage approval.
Some lenders may offer exclusive products accessible only to those with a credit score surpassing 900, making professional advice from a mortgage broker in Leeds invaluable before pursuing such high-end options.
Possessing a low credit score doesn’t necessarily preclude you from securing a mortgage. While specialised deals with higher interest rates may be the route, the opportunity to obtain a mortgage remains. Individual circumstances play a key role, and each applicant’s situation is unique.
In some cases, it can be difficult to get a mortgage with bad credit in Leeds, if you are struggling to get accepted or find products you qualify for, make sure to get in touch with one of our advisors at Leedsmoneyman.
Younger mortgage applicants with lower credit scores, especially first time buyers in Leeds, may still find success, particularly when utilising government-led schemes like Shared Ownership.
Limited credit history may not be a hindrance, but instances of missed payments and defaults can impact mortgage eligibility. Seeking mortgage advice in Leeds before applying for various deals is prudent.
Defaults resulting from missed loan repayments can significantly impact credit scores, particularly when reaching a “poor” rating. A declined mortgage application and challenges in obtaining loans become likely in such cases.
Timely resolution of defaults or the issuance of a County Court Judgment (CCJ) as a last resort should be carefully managed. CCJs remain on credit files for six years, influencing lenders’ perceptions. Seeking advice from a mortgage broker in Leeds is advisable, especially when dealing with credit issues.
Remortgaging in Leeds with bad credit, even for homeowners, may present challenges due to the need for affordability assessments and credit score checks.
Individuals facing this situation might default to their lender’s standard variable rate of interest (SVR). Speaking with a specialist mortgage advisor in Leeds is recommended to explore potential solutions and specialist deals.
Lower credit scores may limit access to lower interest rates, typically reserved for those with “very good” to “excellent” credit. First time buyers in Leeds may still access favourable rates due to their limited credit history. Conversely, adverse credit, such as defaults or CCJs, often results in higher interest rates.
Higher deposits may be required to secure better rates, but bad credit can also necessitate a higher deposit to demonstrate reliability, potentially maintaining a higher interest rate.
If you own a home, the term remortgage in Leeds may have crossed your path. But what precisely does it entail, and how does it intertwine with your financial health?
In this comprehensive guide, we’ll delve into the world of remortgaging, demystifying its meaning and shedding light on its relevance and the potential advantages it can bring to your financial well-being.
In straightforward terms, a remortgage in Leeds, occasionally referred to as refinancing, involves the act of transferring your existing mortgage to a new lender or re-evaluating the terms with your current lender.
This financial manoeuvre empowers homeowners to fine-tune their mortgage arrangements to align more effectively with their present financial circumstances and objectives.
Let’s delve deeper into the fundamental aspects that make up the concept of remortgaging in Leeds:
A significant motivation behind remortgaging is the transition from your current lender to a new one. This choice can be driven by various factors, including the pursuit of more competitive interest rates, enhanced customer service, or more advantageous mortgage terms.
If you’re satisfied with your current lender but seek modifications to your mortgage terms, remortgaging is still a viable option. This can encompass changes such as extending or shortening the mortgage term, transitioning between fixed-rate and variable-rate mortgages, or vice versa.
For homeowners aiming to unlock the equity accumulated in their property, a remortgage in Leeds designed to release equity provides a practical solution.
This strategy involves borrowing against the increased value of your home, granting you access to a lump sum or establishing a line of credit that can be utilised for various financial objectives.
Now that we’ve clarified the concept of remortgaging in Leeds, let’s delve into why homeowners opt to take this step in their homeownership journey:
When interest rates decrease or if you originally obtained your mortgage at a less advantageous rate, remortgaging can enable you to access lower interest rates, leading to decreased monthly payments.
Remortgaging provides homeowners with the opportunity to adjust their repayment structure, making it more manageable. This flexibility allows you to switch between an interest-only mortgage and a repayment mortgage, depending on your financial preferences and circumstances.
If you’re considering a remortgage in Leeds for home improvements, this financial move can provide the necessary funds by leveraging the equity you’ve built up in your property.
By borrowing against the increased value of your home, you can access the capital needed to fund various home improvement projects.
For homeowners in Leeds dealing with multiple debts, like credit card balances or personal loans, a remortgage offers the opportunity for debt consolidation. This means combining these various debts into one manageable monthly payment.
As time passes, the value of your property in Leeds may see significant growth. Remortgaging can be a strategic financial move to leverage this increased property equity for various purposes, whether it’s funding your child’s education or venturing into additional property investments.
Navigating the intricacies of remortgaging in Leeds can be a multifaceted task. Therefore, it’s wise to seek guidance from a qualified mortgage advisor in Leeds. These experts possess the knowledge and experience to meticulously evaluate your unique financial circumstances.
They can help you in identifying the most suitable remortgage solution and provide valuable guidance throughout the entire process. In essence, for most remortgages in Leeds, you won’t need to provide a deposit upfront.
Instead, the key factors in this process revolve around your existing equity and the loan-to-value ratio. It’s important to engage the services of adept mortgage advisors in Leeds who can offer expert remortgage advice in Leeds tailored specifically to your requirements.
They will conduct a thorough assessment of your financial situation, explore various remortgage options, and strive to secure the most advantageous remortgage deal for you.
In conclusion, remortgaging in Leeds is a financial tool that empowers homeowners to make strategic adjustments to their mortgage arrangements, whether it’s for lower interest rates, enhanced repayment flexibility, or accessing home equity.
To make the most of this opportunity, diligent research, expert consultation, and a clear understanding of your personal financial situation are essential.
When it comes to remortgaging in Leeds, it’s not uncommon for homeowners to ponder whether a deposit is necessary. After all, the notion of a deposit is more commonly associated with purchasing a new property rather than the process of refinancing an existing mortgage.
Before we explore the role of deposits in the context of remortgages, it’s essential to have a clear understanding of what a remortgage in Leeds involves.
Essentially, a remortgage refers to the process of either shifting your current mortgage to a new lender or renegotiating the terms of your existing mortgage with your current lender.
People consider remortgaging in Leeds for various reasons, such as seeking a more advantageous interest rate, exploring the option of releasing equity through a remortgage, or aligning their mortgage type with their evolving financial situation.
The good news is that, in the majority of cases, remortgaging in Leeds does not demand a deposit.
Unlike the scenario when you’re purchasing a new home, where a deposit is usually a prerequisite for securing a mortgage, remortgaging predominantly relies on the equity you’ve built up in your current property.
When you initiate the process of remortgaging in Leeds, your home’s equity becomes a critical factor. Equity represents the portion of your property’s value that you outright own, and it increases incrementally as you diligently make mortgage payments.
For example, if your current property valuation is £300,000, and your outstanding mortgage balance is £200,000, your equity would be £100,000. This accrued equity serves as a valuable asset that can unlock various remortgaging opportunities.
Instead of leaning on a deposit, remortgages in Leeds are typically guided by an important metric known as the loan-to-value (LTV) ratio.
The LTV ratio evaluates the amount you intend to borrow compared to your property’s current market value. Many homeowners in Leeds aim for a lower LTV as it often opens doors to more favourable remortgage options.
While most typical remortgages in Leeds don’t require a deposit, there are certain scenarios where it might come into play:
Suppose you have a history of credit issues; in that case, it’s possible that certain lenders may ask for a deposit as a precautionary measure to reduce risk. This deposit serves as a safety net, providing the lender with added confidence in case of any payment difficulties.
If you’re contemplating a remortgage in Leeds with the intention of releasing a substantial amount of equity, it’s worth noting that certain lenders may ask for a deposit to mitigate their financial risk.
This extra deposit acts as a measure for lenders to reduce their exposure when you’re unlocking a significant portion of your property’s equity.
It’s important to bear in mind that the remortgaging process involves several associated costs, including arrangement fees, valuation charges, and legal expenses. These expenses should be carefully taken into account as you assess the advantages and disadvantages of remortgaging.
When it comes to navigating a remortgages in Leeds, it can often be a complex task. Therefore, the most sensible course of action is to seek guidance from a qualified mortgage advisor in Leeds.
A mortgage advisor in Leeds will have the expertise to meticulously evaluate your unique circumstances. They can help you in identifying the most suitable remortgage solution and provide guidance throughout the entire process.
In summary, the majority of remortgages in Leeds do not necessitate a deposit. Instead, the key factors in the process are your existing equity and the loan-to-value ratio.
It is important to engage the services of adept mortgage advisors in Leeds who can offer expert remortgage advice in Leeds tailored to your specific requirements.
They will conduct a thorough assessment of your financial situation, explore various options, and endeavour to secure the most advantageous remortgage deal for you.
For everyone who owns a home, there will be a point in their life, during their introductory period, where that deal will come to an end. If you are thinking in a similar vein to other homeowners, you might be considering taking out a remortgage on your property.
If you would like to learn more about remortgages in Leeds, please feel free to read the various mortgage guides we have on this topic. Alternatively, you might benefit from listening to the “Moneyman” himself, Malcolm Davidson, talking all about remortgages in Leeds.
This will depend on what you are hoping to achieve with a remortgage in Leeds. For a great deal of homeowners, taking out a remortgage in Leeds is the next step that makes the most sense, on the road to improving their lifestyle or making the most out of their home. That being said, it isn’t for everyone.
The purpose of a dedicated remortgage advice team in Leeds is to review your circumstances, what it is you are looking to achieve, and see if this is the most appropriate route for you overall.
We offer a completely transparent mortgage advice service, so if a remortgage in Leeds isn’t right for you, your mortgage advisor will let you know and offer a potential alternative.
As is usually the case with any mortgage option, there will need to be a large amount of careful consideration prior to making any decisions. There are lots of reasons as to why a homeowner may look to remortgage their home once their introductory period has ended.
One of the biggest reasons in recent memory is because of a rise in interest rates. Based on the history of them, interest rates are a lot lower than they previously were, so you are much more likely to see increase than a decrease.
With this in mind, it may be a lot better if you take out a remortgage in Leeds as soon as you are able to do so, fixing in for a specific duration, so that you are able to take advantage of what rates are like currently. People typically choose a 2-5 year fixed rates.
In some cases, you can choose a longer fixed term. A fixed rate could save you a lot of money over the course of it’s duration, as the interest rate may have risen whilst you are fixed, though you will still be paying the lower rate of interest that was available when you took it out.
In other situations, it’s not because the interest rates are going up, but instead because you want to access a better rate that could be eligible for. As time goes on, equity will grow within your property and your property may have potentially increased in it’s value.
The equity that is within your home can be used as a means of accessing a better loan-to-value. This can mean getting much better rates, which in turn can allow you to save money or to reduce your term length, if you would like to do this.
On the topic of the equity sat within the property, other customers may look to release equity through a remortgage as a way to raise the necessary funds to cover the cost of any home improvements, modifications or alterations they are planning to make.
Whilst some may just have the mindset of simply moving home for what they want in a home, for many, they have built a life in this home, potentially raising or having plans to raise a family in it. Because of this, they may need to alter it to fit their needs.
Reasons that frequently occur include for a newly refurbished kitchen, to create an office for working from home, an additional bedroom, more living space, a conservatory or something else. This in turn can increase the value of your home, which is handy if you ever want to sell it.
Throughout your term, you may have gained a portion of unsecured debts against your name that have left the process of keeping up your payments a bit challenging. Though it can be risky, a popular choice amongst homeowners is to take out a debt consolidation remortgage in Leeds.
This type of process will move all of your unsecured debts into one combined monthly mortgage payment. Whilst this gives you more disposable income per month, with less outgoings, it will extend your debt over your mortgage term, which will cost more overall.
You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.
Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.
For some homeowners, a remortgage in Leeds may not be the best choice. Because of this, it is always beneficial to take out expert remortgage advice in Leeds ahead of your fixed period ending, to find the best possible route for you to take.
Your dedicated mortgage advisor in Leeds may feel like it is better for you to take out a product transfer, where you would take out a new mortgage deal, but with the same lender. If you’re in need of more space, perhaps moving home would be more suitable after all.
In rare situations, it may actually be best for you to move across onto your mortgage lenders Standard Variable Rate of interest, though this occur often as it will most likely be much more costly for you on your monthly mortgage payments.
If you are aged 55 and over, owning a property that is worth £70,000, it may be beneficial for you to discuss your equity release options with a qualified later life mortgage advisor in Leeds. They will be able to discuss your lifetime mortgage options, explaining to you the pros and cons.
Get booked in for a free remortgage review today by utilising our online booking feature. A dedicated and trusted mortgage advisor in Leeds will take a look at your circumstances, providing you with expert clarity on which option will be most appropriate for you.
To understand the features and risks of an equity release in Leeds and lifetime mortgages, ask for a personalised illustration.
A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.
We firmly believe that there are many positives to taking on the services of an expert mortgage broker in Leeds, more than there would be to going direct. That’s just our opinion though, of course we’d say that!
In reality, there are positives to going elsewhere, so it definitely is worth exploring your mortgage options. Thankfully for us, the majority of people will opt to speak with a mortgage broker in Leeds. That being said, we will take a look at the pros and cons of both routes.
The first tick in the column of Team Mortgage Broker is that whilst most high street banks can be approached directly, not all mortgage lenders can be.
This means that to get the best deal across all lenders, you’ll benefit from speaking with a mortgage broker in Leeds, though a mortgage lender may still have some deals you cannot get going to a mortgage broker.
An experienced mortgage broker in Leeds will typically require a fee, whereas this likely won’t be the case when going direct. That being said, we can help to recommend other services that you’ll need for much cheaper than they might be with a lender.
Previous arguments could be made saying that “the bank manager knows my finances inside out,” but this was a nullified argument once credit scoring was introduced.
If you know what you are doing and what you are looking for, going direct can be a quick and easy process. On the other hand, if you do not know what you are doing, you could harm your chances of ever obtaining a mortgage, as you won’t match all lenders criteria.
A trusted mortgage broker in Leeds will be able to review the different lenders mortgage criteria and will be able to match you up with the most suitable mortgage deal. We always aim to get this recommendation right first time, which more often than not, we do.
In days gone by, mortgage advisors from high street banks would approve you for a mortgage, whether they were adequately qualified or not. You would not benefit from correct mortgage advice or consumer protection.
As 2014 arrived, this type of practice was banned by the government. Only experienced mortgage advisors could go about providing mortgage advice to customers, making recommendations for products.
The downside to having to now having to only speak with specific individuals at a bank, meant you could be waiting months, just to speak with someone. That’s not good if you’re keen to get it done quickly!
Because of this, usage of a mortgage broker in Leeds rose, becoming a much more popular option. As a company ourselves, we offer various time slots throughout the week, allowing you to pick a time that is convenient to you, and not months in advance!
Quite often, if you’re lucky when booking your free initial mortgage appointment, you’ll be able to speak with someone the same day.
Nowadays, the hardest part of the mortgage process is matching up against the right mortgage lenders criteria. It’s also important to remember that deals with the lowest rates often have higher arrangement fees.
At the end of the day, a deal may be really good, but you’ll need to pass affordability checks and be eligible for that deal in the first place. With the help of a mortgage broker in Leeds, you’ll be able to find deals that are suitable for you.
Thanks in part to the regulations that followed after the credit crunch back in 2008, mortgage applications perhaps are not as straightforward as they used to be.
This isn’t necessarily a bad thing, however, as it makes for fairer lending and less chance of anyone falling into arrears, which both customers and mortgage lenders alike would much rather do without.
That being said, there are still a handful of situations that could cause some issues for applicants, of which a mortgage broker in Leeds may be able to help with.
Over our time as an expert mortgage broker in Leeds, we have seen mortgage lenders demonstrating their competitive prowess, trying to offer better interest rates than their fellow mortgage lenders.
Once again because of the changes to regulations, the other difference between these lenders, is their mortgage lending criteria and whether or not the customer can match up with it.
Examples of how these may differ, is that some mortgage lenders may have more products for self employed applicants than others, whereas others may not but will be more lenient to something like bad credit mortgages.
Whatever your situation may be, it is unique to you. When you get in touch with a mortgage broker in Leeds and discuss your case, we may have encountered something similar before and will use that knowledge to help.
As a part of our service, we aim to go above and beyond for every customer who gets in touch with us. Customers rely on our help, so even if it seems relatively straightforward as far as cases go, we will still give it our absolute all.
During your process, one of our mortgage advisors in Leeds will be able to discuss what your budget is for making an offer on a property and recommend additional services such as trusted solicitors and the right property survey to undertake.
They can also run through any potential insurance options with you, helping prepare you and your family for the future, in the event of anything unfortunate occuring that could hinder your families financial state.
A further aspect of our service that is worth shouting about as a mortgage broker in Leeds, is how responsive we are to our customers. Oftentimes going direct can leave you unsure of what is going on and not always being able to make contact.
Our trusted mortgage advisors in Leeds will always keep you in the loop, with availability from early until late, every day of the week, responding as soon as they possibly can, no matter what you need them for.
Additionally, an overlooked factor as to why people may prefer the services of a mortgage broker in Leeds, is that nowadays people just seem to be so busy. It’s often easier to use a professional service, to take the stress off your shoulders.
This is especially beneficial for professional applicants who are dealing with customers of their own, perhaps not having the time to run through their process themselves.
If you would like to go direct, that is great! Generally though, whether a customer is a first time buyer in Leeds, self employed in Leeds, or looking to remortgage in Leeds, they prefer to enlist the services of an expert mortgage broker in Leeds.
Book your free mortgage appointment today with a fast & friendly mortgage broker in Leeds and we will see how we can help you along your mortgage journey.
So, you have had your offer accepted on a property but, is the house actually worth what you said you would pay for it?
If you are wanting to know what the actual value is and the property’s overall condition, a property survey can help with this.
This survey will mention any significant repairs or alterations needed, like repairing the roof.
There are a plethora of survey options available, however, the most common types include mortgage valuations, homebuyer’s report and a full structural survey. You might find the survey is free of charge, however, this depends on the lender. For more information on the different types of surveys, check out the content below.
The surveys differ depending on the outcomes on the report. For example, you may receive a report that is more detailed and thorough, whereas you might get one that only mentions certain aspects. The more in-depth a survey is, the more it will cost.
Navigating your way through the process can be daunting and you might want to choose the cheaper option. As much as this will save you money at the time, it may not be worth it in the future and become far more expensive.
In the event that you find something on your survey about your property that you weren’t notified about, by law, you can approach the seller and negotiate a fairer price.
The most basic property survey is Mortgage Valuations. You usually have this carried out on when you are working out how much a property is worth. This is helpful to the lender as they need to be sure that the property price matches the amount you are set to borrow from them.
For instance, if you put an offer above the property’s actual value, the seller will likely accept your offer but, your lender won’t. Unless you have the funds to make up the difference, the lender will pull out of the deal which is known as down valuation.
The one drawback with this survey is that it doesn’t highlight any apparent repairs and damages. On the other hand, it can let you know of any obvious structural defects that will require a further look at. If you are looking for a more in-depth property investigation, you will need to pay extra to upgrade your survey. This could be worth it in the long run.
A Homebuyers Report looks at safety. It checks out how safe the property is and if it is suitable to live in. Surveyors will want to know of any mould problems, damp issues or something that does not pass the current building laws.
The report will be carried out by a property expert. They will examine the property from to bottom to see if it’s safe for you to move into.
You might have made an offer on an older building. As a Mortgage Broker in Leeds, we would strongly advise that you undergo a Full Structural Survey.
With the whole property being surveyed, this does make this survey type the most expensive one. This property survey will provide a lot more detail compared to the three primary surveys with showing what condition the property is in and the changes that will need to made if the property price goes through.
A Full Structural Survey can take as long as a whole day, depending on the property size.
It can take a surveyor as long as a whole day to carry out a Full Structural Survey, however, this does depend on the property size.
When it comes to new build properties, surveys work a bit differently. There is a property survey designed for new builds called a Snagging Survey. This will inform you of any minor and significant issues. The issues could range from a crack in the ceiling to a missing hinge on the door.
The new build might be built and ready for you to move into which, in this case, means you would want to look at getting a snagging survey carried out prior to moving in. By doing this, you are able to negotiate the price if there is anything wrong with the property.
If you are wondering which survey is the best one for you, please don’t hesitate to get in contact with our team. We have extensive experience helping many first time buyers in Leeds and people looking to move home in Leeds find the most appropriate property surveys.
You can receive the services of a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.
It can be a very difficult time when you have to close the door to a relationship. Moving on, trying to arrange finances and finding where you’re going to live can be very stressful. Your financial commitments to one another must be attended to first. This may not go as smoothly as you would hope and you may encounter some bumps along the way.
Our job is to help you through the financial hardship that you and your ex-partner are facing, in particular, the mortgage side of things. We have a history of helping applicants in this situation and experience helping customers in other specialist situations such as debt consolidation, equity release and buy to let investments.
As a Mortgage Broker in Leeds, we are often able to help applicants going through a divorce or separation. Here are the most common questions asked by customers when it comes to Divorce & Separation Mortgage Advice in Leeds:
If there are children involved in this situation, it is usually the mother who stays inside of the property; this isn’t always the case though. Regardless of gender, it will be the same process for you if you want to remove your ex’s name from the mortgage.
Once you have decided that you are going to be the applicant to remain living inside the property, you will need to try and remove your ex-partner’s name from the mortgage. This is where you and your ex-partner will need to prove that they’re financially stable with their sole income alone. This can be demonstrated in different ways; measuring affordability, costs of living, and eligibility.
If you manage to remove their name from the mortgage and you have demonstrated that you are able to meet your repayments without your ex’s contribution, if by any chance you fail to meet a payment, they can chase your ex for the money. This is because, at the time of taking out the mortgage, you were registered as a second applicant so they can legally still ask for the money from you.
If you cannot demonstrate that you are able to afford your mortgage repayments on your own, then you may need to ask a family member to help out, or in some cases, an applicant will already have another person ready to move in.
It also makes no difference if you and your ex-partner create a verbal agreement that one party will not contribute towards any payments. Until you have successfully removed the name from the mortgage, that party will still remain liable for any payments, should the balance fall into arrears.
The process works exactly the same, however, you are trying to move out of the property and take your name off the mortgage. A recurring problem here is that the applicant remaining inside of the property could refuse to have your name taken from the mortgage. This could mean that you are still liable for any outstanding repayments that are not met by your ex-partner.
We deal with customers in both scenarios in Leeds, and most of the time it can be a complex and difficult situation, as it’s not that easy to remove a name from a mortgage. It also means trying to get a mortgage of your own as a sole name applicant or trying to get a mortgage still linked to another one. Even though you may not be paying anything towards the repayments, it doesn’t mean that you are not responsible.
If your name is still on your ex-partner’s mortgage, you may be asking the question “can I get two mortgages”. The simple answer is yes, however, it is down to your current financial and personal situation.
If you are still financially linked with your partner, your Mortgage Broker in Leeds or lender will assess this situation and be able to determine whether you can afford to be linked with two sets of repayments. Lenders always check ongoing financial commitments, which can include the mortgage payment you currently hold with your ex and any additional commitments you have, such as car payments, phone bills and more.
Our Mortgage Advisors in Leeds will try their best to help you in your situation. We know that not every scenario is the same, therefore, we will make sure that we are fully aware of the full picture before continuing.
Don’t be ashamed of getting Specialist Mortgage Advice in Leeds, we can work out how much you are able to borrow by checking your affordability and then take a look at some potential deals that could be perfect for you. If we work out your budget, you will be able to get an idea of where you stand.
Moving on from previous joint financial commitments can be difficult, and that is why we want to take the stress away and offer a helping hand. Remember that as far as lenders are concerned, it’s all about the risk. They would prefer to avoid repossession situations at all costs.
Over the past three years, more and more people have been investing in home offices and extensions. This is due to job roles altering, people wanting a fresh change and growing families. Rather than Moving Home in Leeds, it may be more financially beneficial to Remortgage for Home Improvements instead.
Home Improvements range from home offices to conservatories to home Gyms. Anything that you can think of adding to your home could be considered a ‘Home Improvement’.
You would think that incorporating home improvements into a remortgage could be costly, however, in the long run, it can work out cheaper. The way that this works is that you incorporate the costs of the home improvements into your mortgage and you pay it off with your mortgage.
If you were to pay for a home office upfront, you would have to pay the full amount there and then, whereas, when you combine the costs into your mortgage, you are spanning the payments out until your mortgage term ends.
Remortgaging for a home office should be less costly than remortgaging for a gym or kitchen renovation. To get the true cost for your home improvements, you will need to get a quote from the renovator or tradesman that you are using. This will then allow you to work out how much you need to incorporate into your remaining mortgage amount.
For example, if your estimated costs are £5,000 for your new home office, you may only have to pay an extra £21 per month on top of your usual mortgage repayments. This is assuming an interest rate of 2% is possible over a 25-year term. If your term is shorter, you may have to pay slightly more per month.
Many factors will affect how much you will have to pay back per month and how much you can borrow overall. It is down to the specification of the home improvement, such as the size of the extension and the amount of work that needs doing in the room. You will also need to consider that with a remortgage, you will also have to undergo another affordability assessment, even if you switch deals through the same lender.
If you consider how much it is going to cost to move home and the stress involved with buying and selling a property at the same time, remortgaging could be the best option. Remortgaging in Leeds for a home office could help you pace your repayments and you won’t need to pay for the full cost all at once.
Now is a better time than ever to remortgage, there are many different deals out there that can help you fund your home improvements. There are also lots of positives to converting a room into a home office in your new property:
If remortgaging for a home office sounds like something that you are interested in, then make sure to get in touch with our team to discuss your options. You can book a free remortgage appointment through our ‘Book Online’ system, it’s simple and easy to follow.
We can access 1000s of remortgage products and deals. Your remortgage advisor in Leeds will search for the perfect one for your personal and financial situation. They will also perform an affordability assessment to make sure that you will pass the lending criteria.
We are looking forward to helping you with your remortgage in Leeds.
Lenders use a credit score to help determine whether you qualify for a mortgage loan or any form of credit. Using your credit report and any other details you provided during your application, lenders use a mathematical model to establish a numerical score representing your credit history.
Although different lenders have their own unique credit scoring models, the credit score that you’ll have listed on your score will likely range from 300-800+. Your credit score represents what kind of borrower you are and how likely you will manage your repayments.
A credit score below the ‘good’ range may mean that you’ll only be able to access specialist products, whereas, if you have a score greater than ‘good’, it’s likely that you’ll be able to access more competitive products.
As an experienced mortgage broker in Leeds, we handle specialist cases every day. We often find that our customers have come to us after being declined by their bank/building society due to a low credit score or something similar.
It’s our job to pick up where they left off on their mortgage journey and try to secure them a great mortgage deal. To speak with a mortgage advisor, book your free mortgage appointment online or give us a call
There are many different reasons you could have a low credit score. For example, you may receive a CCJ when you’ve taken a loan/borrowed money and have failed to pay off the amount owed.
CCJ’s can put a harmful imprint on your credit file for six years or more, and that’s why it’s so vital that you try and get the CCJ removed from your file before applying for a mortgage or make sure that you pay off all owed payments before you receive a CCJ.
A CCJ will undoubtedly reflect negatively on your mortgage application, and your lender will start asking questions.
Following CCJ’s, failing to stick to credit agreements can harm your credit score. Even failing to keep up with your mobile phone contract payments can eventually cause damage to your credit file.
You can’t forget about the little things either, as they can cause damage too. For example, dipping into your overdraft every month could cause a long term adverse effect.
These are just a few examples of things that can negatively affect your credit score. Of course, there are many other reasons you may have bad credit, and some are more obvious than others.
It’s our job to try and help you improve your score and give you expert tips to try and get your credit file looking up to shape.
Improving your credit score, exceptionally when low, can sometimes be challenging. When it comes to helping you improve your credit score, we want to give you the best advice possible to help you do so.
You should know that each lender has its unique passing criteria, so your score may affect what sort of deals you can access from each one.
Also, you may not match every single mortgage product, so rather than applying for many different products, you could try shopping around for mortgage deals that will fit your situation and credit score.
You’ll have a soft or hard credit search performed on you whenever you go directly to a lender, and their in-house mortgage advisor puts you through for a deal. This search will imprint your credit file, and other lenders will be able to see the search.
If your application gets declined, the credit search on your file may harm your credit file, which is why we recommend keeping the number of searches performed to a minimum.
As an expert mortgage broker in Leeds, we can help. Our team of experts will look at your credit score and only look for products with criteria that we know you’ll pass.
Applying for credit, particularly during your mortgage application, can sometimes backfire on you. If you take out a loan or apply for extra credit if you fail to pay it off before your application, your credit score may dip, and it could reflect poorly on your credit file.
In some cases, as long as you pay it off, borrowing credit can help improve your credit score, as this shows that you are a reliable applicant who meets their payment deadlines.
An easy way to help improve your credit score is to get yourself registered onto the voter’s roll (if you aren’t already).
If you aren’t registered, it’s a simple registration process; head over to the official government’s electoral roll page to find out more.
Make sure that you fill out accurate information when registering for the roll. You will need to provide your current living address, so make sure that there isn’t an old address listed on the system.
During the mortgage application process, you should ensure that all of your information gets filled out correctly and double-check that you’ve not got an old address listed anywhere.
Maxing out your credit card(s) each month can heavily impact your credit score negatively. Of course, paying off your credit cards each month will help and may give your credit score a slight boost.
If you are exceeding credit card limits and constantly dipping in and out of your overdraft, they may feel as if you don’t take your finances seriously and are an unreliable applicant.
Your credit score could be getting harmed without you even knowing if you are still financially linked to someone who has bad credit. Whether it’s an ex-partner or a family member, you should try and get your financial links removed from them if they are harming your credit score.
The only way to do this is to contact your credit reference agencies and request.
It’s up to your lender to decide whether they feel like you are the type of person they want to be lending. Some may be more lenient than others, whereas some may be strict and won’t give you some leeway.
Sometimes it’s best to get help from professionals like us. Using a mortgage broker in Leeds could allow you to access new, competitive mortgage products.
Whether you’ve got bad credit or good credit, it’s our job to try and find you a product that you perfectly match. We have a vast panel of high street and specialist lenders, each with 1000’s of mortgage deals for you to try and access.
For further credit score mortgage advice for first time buyers in Leeds and home movers in Leeds, feel free to get in touch today.
As one of the most popular mortgage types, it’s important that you know what a fixed mortgage is and how they work. When it comes to your remortgage, you may want to explore your options, therefore, finding out about the different types of mortgages could help you make your decision.
Your interest rate on a fixed-rate mortgage will remain the same throughout your fixed term. Whether this is a longer term or a shorter term, either way, your interest rate will not change.
Typically, the longer that you fix in your mortgage for the higher the interest rate will be. Therefore, if you are looking for a lower rate mortgage, you may need to look at taking one out over a shorter term. The only real downside to short term mortgages is that your renewal will be due more often. Short term fixed deals usually last 2-5 years.
During your remortgage in Leeds, it may be worth looking at fixed-rate products so that you know exactly what you’ll be paying over your fixed-term.
If you are happy with tracking a slightly higher interest rate over a longer period of time so that you don’t have to remortgage and pay the extra fees that are involved with taking out a new product, a medium to a long-term fixed mortgage may be more suited to your needs. 5-7-year fixed-rate mortgage products tend to be the most popular amongst people in this kind of situation.
Despite the high interest rates, if you still want to take out a product over a long term, you could look into the possibility of taking out a 10-year fixed-term rate. Although, 10-year terms are a little harder to find and you may need to approach a specialist lender to take out one. They also come with high costs as you’re locking in for a decade, a lender needs to be able to trust your affordability throughout the term.
In comparison, both medium and long term fixed-rate products have their advantages and disadvantages, however, it mainly comes down to your personal situation and what type of product you are looking for.
Upon remortgage, you will face booking and arrangement fees. You will need to consider these costs before taking out another product. Sometimes, you will be asked to pay these fees upfront just in case your purchase falls through. Your Mortgage Advisor in Leeds should go through these costs with you before you take out a new product with them.
If you are taking out a long-term mortgage product, you may be able to avoid these fees.
If your financial situation changes unpredictably and you pay back your mortgage earlier than you originally planned, you may face an ERC. An ERC or an Early Repayment Charge is a fee that you’ll receive for paying off your mortgage term too early.
An ERC is calculated through a percentage of the amount that is still left on your mortgage. For example, if you have £200,000 left on your mortgage and you paid off your term early, with a 2% fine, you may face an ERC of £4,000.
Some people will deliberately pay off their mortgage term and face an ERC. This could be because they’ve acquired a large sum of money for some reason and want to pay off a part of their mortgage, they’ve seen a new mortgage deal after a long term and they want to access it early or simply that they are at the end of their whole term and just want to pay it off.
Make sure that a fixed-rate mortgage is right for you before taking one out. It could turn out that another product is more suited for you.
There are many different types of mortgages available on the market, therefore, it’s wise to shop around first! We would always recommend speaking with a Mortgage Advisor in Leeds to get some helpful information and tips.
You can easily find out more information and get remortgage advice in Leeds by contacting our team. We offer a free Remortgage Review for every customer – all you have to do is book your appointment online.
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UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Leedsmoneyman.com & Leedsmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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